When buying an apartment to find out in advance if the complex has a hotel license O5. If there is, instead of a quiet corner with a paradise view, you may find yourself in a noisy place. Therefore we can give you a list of projects with a hotel license and without it, so you can choose the best option for investment.
If you are going to buy an apartment for investment and profit, it is better to choose a project with a hotel license. We can give you a list of projects with a hotel license.
If you want apartments for personal residence, retirement living, living with children, you should choose a residence, which will provide a more peaceful stay.
And if you want to make money on the daily rental, then you do not just need a house with a hotel license
Once a property is completed, it is important to understand what options the owner has in order to generate income from their property.
Rent management company
In some projects, the original developer (or contracting company) will be assigned to manage the lease for a particular project. In such cases, the company is responsible for marketing activities to attract tenants, negotiate and secure bookings, register the client upon arrival and ensure that the property remains in the same condition upon departure. Often, rental management companies require the property to be put into a “lease program” for a fixed period of time – typically 1-2 years, and the rental funds are split between the owner and the management team somewhere between 80:20 and 60:40 in favor of the owner.
Rental pool (rental pool)
Some rental management programs are divided into “pools”, that is, they allocate properties by “type” (for example, 1 bedroom – 2 bedroom – 3 bedroom configurations).
Unlike the example above, where owners are rewarded for the performance of their particular property, the rental pool program groups properties by configuration together and pools the revenue generated from each type to distribute evenly among owners. There are pros and cons to this model, which depend on the overall estimated occupancy and whether your property is a condominium or villa. That is, if you paid more for a great view or improved your property, then it will generate the same gross income as the same type of housing, without a great view or improvements.
Lease management through a private company
In the case of a development that does not have a rental management program, owners may contract with a private management company to provide the same services as described above. Generally speaking, these contracts are more flexible and allow owners to live in their property at any time during the year if they so desire.
Guaranteed Rental Program
This is a marketing tool that quickly spread to investment projects. Essentially, what some developers offer is a fixed percentage return on the purchase price over a period of time. For example, 7% for 5 years. During this time, the owner will be allowed 1 or 2 weeks of personal use per year, and the rest of the time the developer will have the right to rent out the property.